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GST: Government seeks data from CPSEs on procurement from MSME sector - GST Station

GST: Government seeks data from CPSEs on procurement from MSME sector

GST: Government seeks data from CPSEs on procurement from MSME sector

    NEW DELHI: The government has sought details from all central public sector enterprises (CPSEs) on their procurements from micro, small and medium enterprises, especially those owned by women, to assess their support for these small businesses.

    The government had directed all departments and public sector companies to purchase at least 25% of their goods and services from such enterprises. It had asked the state-owned companies to get on board the Trade Receivables Discounting System (TReDS), a digital platform aimed at addressing the critical financial needs of micro, small and medium enterprises (MSMEs).

    “The government is looking to promote the MSME sector and has taken a series of steps to support them. CPSEs can play a major role in promoting such enterprises,” said an official with the department of public enterprises, the nodal agency for all CPSEs.

    The credit outstanding to the MSME sector contracted by 1.4% in September although overall bank credit grew 11.3%, according to Reserve Bank of India data. The government will take up the issue of providing more relief to the MSME sector at the RBI board meeting scheduled on November 19. ET reported earlier that the government had initiated consultations with the RBI on a dozen issues after invoking Section 7 of the RBI Act.

    Prime Minister Narendra Modi launched the MSME support programme earlier this month, offering benefits including loans in 59 minutes and 2% interest subvention or rebate on incremental loans of up to Rs 1 crore for GST-registered MSMEs.

    The government has amended the Public Procurement Policy and expects to improve market accessibility and enhance competitiveness of MSMEs, the official added. CPSEs have been directed to also provide a minimum 3% reservation for these enterprises owned by women.

    The government has asked public sector banks to register themselves on the TReDS platform to enable faster payments to small businesses. It will update udaymitra.in, a web portal where MSMEs can list their projects and banks can compete to finance them.

    In order to aggregate products and services of MSMEs, a drive has been initiated to put them on the Government e-Marketplace (GeM), where they can be purchased online by ministries, PSUs and autonomous bodies.

    Source- Economic Times.